Cerebras stock surged 6.3% in premarket trading on October 5, 2026, following reassuring comments from OpenAI CEO Sam Altman, who described Cerebras as a 'close partner' and emphasized their 'deep engagement pushing on the frontiers of speed' [1]. This rebound comes after the AI hardware firm's shares plummeted 20% last week to their lowest price, triggered by news that OpenAI would use Nvidia's GPUs for its 'Ultrafast' mode in GPT-6.1 Sol instead of Cerebras' chips [1]. Altman's statement on X helped the stock recover, rising almost 3% in extended trading Friday and reaching $177 per share in premarket, though still nearly half its post-IPO high [1]. Cerebras' market capitalization now stands at just over $39 billion, a significant drop from $95 billion at its Nasdaq debut in May [1].
Cerebras, positioned as a competitor to Nvidia, markets large computer chips and AI systems designed to accelerate AI model performance. The company claims its flagship Wafer Scale Engine 3 outpaces Nvidia's GPU in speed [1]. In January, Cerebras secured a $10 billion deal with OpenAI to supply 750 megawatts of computing power through 2028, underscoring the strategic importance of their partnership [1].
Citi analysts commented that their revenue outlook for Cerebras between 2026 and 2028 remains 'unchanged' despite recent volatility. They noted that frontier-AI labs' latest models would likely launch on internal chips before transitioning to third-party or Cerebras cloud, suggesting it is 'too early to read much into' the recent developments [1]. The analysts highlighted that Cerebras' stock performance is increasingly linked to evidence of gross margin stabilization, warning that any further delay in reaching the gross margin trough could negatively impact sentiment, especially given the company's premium valuation [1].
Technical analysis indicates support for Cerebras shares at the $175 level, with resistance near its post-IPO high. Market sentiment is described as cautiously optimistic, contingent on gross margin stabilization and continued partnership and revenue potential with OpenAI [1].
CONCLUSION
Cerebras stock rebounded sharply after OpenAI's CEO reaffirmed their partnership, easing investor concerns following a steep decline. While volatility persists, analysts maintain a stable revenue outlook and emphasize the importance of gross margin stabilization for future performance. The market remains cautiously optimistic, closely watching Cerebras' execution and partnership developments.